Abstract
The purpose of this study is to find out the effect of intellectual capital disclosure, information asymmetry, and firm size on cost of equity capital with managerial ownership as moderating variable. Total sample used in this study is 47 companies listed in the LQ45 Index in Indonesia Stock Exchange (IDX) during the period February 2014 - January 2017. The study period was 2013-2016. Data analysis technique used in this study is descriptive statistical analysis, ordinary least square analysis, and moderated regression analysis. The results of this study show that intellectual capital disclosure has an effect on the cost of equity capital. Components of intellectual capital disclosure, such as human capital, structural capital, and relational capital, have a significant effect on the cost of equity capital. But information asymmetry and firm size have no significant effect on the cost of equity capital. Managerial ownership, as moderating variable, cannot moderate the effect of intellectual capital disclosure, information asymmetry, and firm size on the cost of equity capital.
Highlights
Financial statement is a statement that shows the company’s financial condition either at present time or in a certain period (Kasmir, 2014: 7)
These results indicate that the variables of intellectual capital disclosure, information asymmetry and firm size simultaneously influence the cost of equity capital
Based on the test results, it can be concluded that: 1. The first hypothesis (H1) test result shows that intellectual capital disclosure has a significant effect on the cost of equity capital
Summary
Financial statement is a statement that shows the company’s financial condition either at present time or in a certain period (Kasmir, 2014: 7). The company’s capital is presented on the liability side where there is information that the company gets a source of funds. The funds obtained by the company generally come from both their own capital and outside the company (foreign capital). Botosan (2006) argues that the greater the cost of capital issued by the company, the higher the risk in investing, Devita Hendini Putri & Nur’aini Rokhmania, Equity Capital with Managerial Ownership because the company’s activities in conducting stock public offerings and finding source of funds will be lower. Fluctuating economic conditions can affect investors’ assessment of the cost of equity capital
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